With the advent of mobile devices more powerful than the workstations of just a few years ago and the introduction of cellular technologies faster than their fixed line counterparts, mobile computing has become the preferred way to consume content, contributing to large amounts of data being carried over cellular networks, and growing at an fast pace. Unlike fixed wired networks, which can be expanded by laying more cable, wireless network capacity is limited by the capacity of the shared wireless medium in a region. Thus, wireless network capacity is an acutely limited resource as a direct result of a finite set of available frequencies and the laws of physics that limit the number of bits than can be carried by each hertz. The combination of both observations creates a situation where demand for wireless network capacity will quickly exceed the supply.
Mobile operators (i.e., operators of wireless networks) are spending capital acquiring the rights to spectrum frequencies, building out network infrastructure to carry the ever-increasing amount of traffic over their wireless networks, without being able to pass on the cost to their subscribers. This untenable situation has forced the telecom industry to move from unlimited pricing to tier pricing. But tier pricing is not a satisfying and cost-effective solution as it restricts mobile, on-the-go consumption and often, results in overage when subscribers inevitably hit their data limits, i.e., consume more than their data allotment. As an example, streaming a 2-hour movie in HD on a mobile tablet over fourth-generation cellular technologies will result in a data usage greater than most of the highest tiers offered by mobile operators for a month worth. Subscribers want more mobile broadband at no additional cost while mobile operators need incremental revenues to account for the added load on their networks and continue investing in their infrastructure.